Posted
by
timothyon Wednesday July 29, 2009 @03:33PM
from the probably-good-swag-on-day-1 dept.

UnknowingFool writes "MS has announced the locations of its first two retail stores. The first one will be located at The Shops in Mission Viejo, CA sometime in the fall. There is an existing Apple store at the location. The second one will be located in Scottsdale Fashion Square in Scottsdale, AZ. That location does not have an Apple store. According to Corporate Communications Director Kim Stocks, the locations were picked because they were 'hot markets,' presumably meaning high traffic. Also, the stores will sell laptops, Zunes, Xbox 360s, MS and 3rd party software. No details on which laptops were provided."

How this got modded informative is beyond me. Anyone can simply head over to the web site that Apple maintains with the list of stores [apple.com]. The stores in Arizona are:

Chandler, Chandler Fashion Center

Gilbert, SanTan Village

Glendale, Arrowhead

Phoenix, Biltmore (where I do most of my Apple Store shopping)

Scottsdale, Scottsdale Quarter (note that this is not the Scottsdale Fashion Square!)

Tucson, La Encantada

Furthermore, there's a link to the store at Scottsdale Quarter [apple.com], which gives a map that shows the store is located on Scottsdale Road south of Kierland Boulevard. A Google search will turn up the site for the Scottsdale Fashion Square [fashionsquare.com] mall, which is at the intersection of Camelback and Scottsdale Roads. Plugging that into Google Maps (which Apple conveniently uses for the map and provides a driving directions link for) shows that the two locations are separated by 8.5 miles. So they're not even close.

I'd assume that MS has little interest in trying to compete with their existing (and already hugely effective) low-margin/low-end product sales channels. There are already numerous outfits moving cheap wintels by the palletload, an unsexy job, but one that requires considerable logistical skill.

Where MS's existing sales channels are making very little headway, comparatively speaking, is the high end. These numbers [arstechnica.com] suggest that just over 90% of computers that sold for over $1,000 were macs. That is pretty

Nah,just that the new "hip" is to look like you're being tight with your money, "oh, look at me forgoing my Gucci for Eddie Bauer". It's actually the perfect time for Microsoft to open stores... nothing says that you're cheap and shows that you're stupid like buying a windows laptop *rimshot*. And remember, just because your investment income doesn't match your $300K salary right now doesn't mean that you're poor.

That's just silly. Northern Arizona (Flagstaff, for example) gets snow, and is actually quite chilly much of the year. Phoenix and Scottsdale may get ridiculously hot in the summer, but that only lasts about 4 months; the rest of the time, it's comfortable shirt-sleeve weather with low humidity, and it's not unheard of to need a jacket or sweater during the winter, especially at night. Why, we've even been known to get frost on the ground. I even remember it snowing once! (The snowfall only stuck to th

I just got back from the Mission Viejo store. They're serving free beer! At least, they said it was beer, I've never had bright-red, fruit-flavored beer served with ice in a glass pitcher before. Anyway, apart from the cherry-flavored sugary stuff they said was beer, the Microsoft store experience is a well-executed, classy affair that calls to mind the most elegant retailers outside the technology sector, from Nordstrom's to Saks Fifth Avenue to Neiman Marcus. There was free beer, and the tranquil, soothing environment makes you feel like you're the only customer in the store (which I'm sure was just a coincidence in my case) and really puts the crowded, noisy atmosphere in the Apple store to shame.

Clearly, Microsoft, under the forward-looking leadership of CEO Ballmer, has taken a bold yet welcome step into the world of luxury retail. Their new storefront strategy looks like a can't-miss proposition. And the beer, did I mention the beer was really good? And it was free, too, I'm pretty sure I mentioned that. Anyway, I look forward to returning, once I've installed these new copies of Vista Ultimate Edition I just picked up. Thanks, Steve!

I just got back from the Mission Viejo store. They're serving free beer! At least, they said it was beer, I've never had bright-red, fruit-flavored beer served with ice in a glass pitcher before.

There's just so many jokes to make here I don't even know where to start. I guess I'll go with the non-obvious and ask if they promised there would be punch and pie. Sounds like they got the punch right but where's the pie?

There's just so many jokes to make here I don't even know where to start. I guess I'll go with the non-obvious...

Unfortunately there's only one joke for me to make here. It starts with the World Health Organization, and ends with Orchard Supply Hardware. It's kinda short, but if you get it, it's actually pretty damn funny.

There is just one thing that interests me about those stores: According to the leaked ppts they are actually considering to have private birthday parties there. I'd like to know who would actually pay for celebrating in a MS store and what the program for that would look like.

I just can't think of any way which doesn't result in utter embarrassment for everyone involved.

Working at the Microsoft store in a mall where there's an Apple store would be a painful experience.

Yeah, it'd suck selling 10x the number of computers than the Apple store did. You wouldn't have time to annoy customers browsing your store, like the Apple store does. Also, I'd hate to have to be the one to have to stock the game section. That's a ton of work.

If I sell 10 $1000 laptops for every $3000 MBP you sell, well, I've trumped you in both revenue and volume.

Yes, but you have to do that, and no retail outlet has ever done that, because you pulled those performance figures out of yer butt. We've been through this before with the Gateway and SonySTYLE stores... the thing that sets the Apple stores apart is the on-site customer service operation/"Genius Bar", the good curb appeal and browser-friendly experience, and the relatively well-informed staff. The MS stores could do as well if they incorporate those things, but considering they computer hardware they sel

You're not understanding. The point is that there's little correlation. How many laptops does Best Buy sell? Saying "it's going to be pretty hard to sell 10x the number of computers the Apple store does" is kinda silly when you have two vastly differing markets in terms of scale, economy, model choice. "Is it easier to convince (for example) 3x to part with $1,000 than it is to convince x people to part with $3,000?"

The comparison to Tiffany's in revenue per sq ft is meaningless. "Consumer store sells more

You are probably right, there's some correlation but not much. Apple might not actually move as many units as a Microsoft store... they'll just have to find consolation in the fact they run a much more profitable retail operation. It's hard to see how MS could possibly extract better profits considering the material they're selling.

". Revenue per sq/ft is really only a measure of rental/lease costs on a property, and has very little to do with retail success.

I dunno, since rent is the primary and distinguishing cost factor for a retail operation, it seems like performance per square foot would be a key metric, all other things bei

Hey guys! You know that software vendor, you know, the one that you send really, really REALLY big checks to every weeK? You know, for license fees?

Well guess what? They're taking all that money you are sending them, and using it to build a private chain store in order to cut you out of the equation! Really makes you feelg good about that six-figure WEEKLY check you send them, doesn't it?

This is probably the DUMBEST possible move that MS could make - after 30 years of selling only through 3rd parties, setting up a 'bricks & mortar' chain while trends are to go virtual, while simultaneously pissing off their huge, multi-billion dollar partners... stupidity at its finest!

I made my comment because the only proof we have right now is that they will be sold in more stores.

Now, assuming that the poster was right and MS tops them from selling Linux to be able to be sold in the MS store, they will still be sold in more stores than they were before. This is because they would obviously choose MS over linux. Hense, my comment.

Guess I did not spell it out clear enough in the first post. Hope this helps you:-)

Don't like what MS demands for the desktop? Oops, I guess we can't sell your laptops in the stores anymore.

Promise to ditch linux? Yeah, we can make space for your wares in the stores.

This isn't good news for vendors no matter how you slice it.

Very good analysis. I would add, however, that if MS pushes this strategy too far (and the only way for it to have leverage is to push it too far, if you think of it), they cause HP or some other vendor to go completely Windows-free.

One of the worst problems with the Gateway stores is that they couldn't fix your computer, they could only ship it to be fixed, even if it just needed a disk swapped. One of the best features of the Apple store is that you can have your hardware fixed relatively quickly. If they're out of the part, you might have to get it the next day.

If MS can't fix any of the hardware they sell on site, even if it's from another vendor, it's going to hurt their reputation and make people hate the stores.

Redmond-based Microsoft's stores are a way for the company to introduce consumers to its products in person, but they are not meant as a product showcase or a replacement for big electronics stores, Stocks said.

RTFA: it's not just for breakfast anymore.

Also, when was the last time you saw a laptop with "Microsoft" on the case? Microsoft *still* doesn't make their own laptops, they will *still* be selling laptops from Dell, HP, Lenovo, Asus, etc.

Also, when was the last time you saw a laptop with "Microsoft" on the case? Microsoft *still* doesn't make their own laptops, they will *still* be selling laptops from Dell, HP, Lenovo, Asus, etc.

I think the strategy is not too dissimilar to donut chains selling "premium coffee". Instead of selling the usual low-grade commercial blends, they'll sell mediocre-grade coffee but tart up the cups and store displays and use an espresso machine to output crappy coffee.

Will they have a genius bar? If my Aunt Click-on-everything has messed up her computer, can I simply point her to the Microsoft Store store and expect them to fix it for free? Apple has a tax or premium built into their products for their service.

Should people expect Microsoft to fix their OS after they've installed every spyware software known to man? I'm sure that some Karl Rove disciple is busy printing out fliers explaining the Microsoft Store fixes all computers for FREE. Now that would be an interes

Will they have a genius bar? If my Aunt Click-on-everything has messed up her computer, can I simply point her to the Microsoft Store store and expect them to fix it for free?

Doesn't matter if you can because everyone automatically will. First, because Apple has trained people to expect the kind of service. The last thing MS wants to do is get a reputation for saying that it's the other guys that take care of their customers.

Second, there will finally be a live face for Microsoft. This is huge and I don't think MS realizes how this is going to play out. As someone who has sold computers and has a lot of experience with hardware support, the eternal refrain in every box store employee in the world when clueless customers come back four months later with screwed up software is "I'm sorry, that's a Windows problem, there's nothing we can do". Now there is actually a face for Windows. There will be physical stores where poor unsuspecting sales people will be forced to address every software problem that can happen on a windows box, regardless of if it is actually caused by anything MS is responsible for.

See, the backfire to MS's ubiquity is that for a LOT of people (and a majority of those that will be prone to software problems) equate the the computer with Windows. Their computer IS windows and everything that happens on it is Windows. So if something is wrong is is a Windows problem. And now every box store employee that doesn't want to spend time troubleshooting another screwed up system has somewhere to point the customers. And once people have been told that their hardware is fine but Windows is broken the employees at the MS store are NEVER getting rid of them.

I didn't realize that Mission Viejo was such a hot market...
No one goes to The Shops except for locals. If MS really wanted to 'showcase' their products they could have chosen a much more high profile-venue. And there are plenty in OC: The Spectrum, South Coast, Fashion Island, or even The Block.
Not to mention the fact that there is a Costco across the freeway and a Best Buy a mile up. I'm sure they'll be happy to 'introduce' consumers to Microsoft (as if MS needs an introduction anyway).

Nonetheless, these are not MS's first two retail stores. Of course, for them to acknowledge the Metreon store would be to acknowledge that they've tried and failed, so from a marketing perspective, "first" it is!

that's where they belong for the customers they have. As I've said time and time again, Microsoft is the McDonalds of computer technology. It isn't the worst, it is far from the best, but it is what it is and the average Joe/Josey who either doesn't want to do any thinking or can't is fine taking what's shoveled onto their plate. Apple stores work because they are high end and stylish so their stores work fine in various mall's but would not do so well next to Walmart. The Microsoft store isn't going to do anything but weaken their already weakening brand because it doesn't make sense to have a Microsoft store other than another attempt at marketing the brand.

Should be fun to watch this unfold because unlike other Microsoft failures, this failure will not take out the innovator in the market.

an Apple store is not and iPod store. But, given the iPod's fame and market penetration, it would be nuts for Walmart not to sell iPods also but I would doubt they sell as many of the $250+ models as an Apple store but probably sell much more of the ~$100 shuffle and lowend iPods.

My point was about the Apple "store" and in general Apple products tend to be high end and stylish at a higher price. Microsoft, in general is about low end, kinda works, products and so it goes with the Microsoft "store". Sure, Microsoft will show a MS Surface device in every store but come on, is that where you'd go to buy one? It's just a marketing gimmick and so will most of the expensive hardware there. Even the Microsoft ads sell them as the low price company.

They'll do better near Walmart and away from Apple stores. But, they've got the money to dump on yet another money losing venture.

The only good part of the store will be the gaming section with it's X-box 360s hooked up to 50" LCD TVs..The rest of the store will suck..I wonder if they are going to have someone dress up as clippy so that the children can beat them with pinata bats?

I thought one thing was a bit odd. When I walked up to the store, the front doors were closed. On the door is the following: "By opening this door you agree to abide by our End Shopper License Agreement. Detailed terms of the agreement can be found inside at the back of the store".